Building Better Commodity Spreads – Part 4: Why Three Legs Can Be Better Than Two

Most traders focus on choosing the right market and seasonal pattern, but another important decision often receives far less attention: spread structure. In Part 4 of the Building Better Commodity Spreads series, we examine why two-leg and three-leg spreads can produce very different historical results. By analyzing thousands of historical trades, we found that the preferred structure varies by market, with three-leg spreads often delivering higher returns, improved win rates, and fewer large losses. Learn why leg structure is another valuable filter in identifying higher-probability commodity spread opportunities.Sugar cube pyramid by Artefacti via iStock